Core Inflation

Year-over-year change in personal consumption expenditures and consumer price index, excluding food and energy.

2016

0.5

0.8

1.20

1.40

1.6

1.8

2.2

2.5%

2008

Apr

Jul

Oct

2009

Apr

Jul

Oct

2010

Apr

Jul

Oct

2011

Apr

Jul

Oct

2012

Apr

Jul

Oct

2013

Apr

Jul

Oct

2014

Apr

Jul

Oct

2015

Apr

Jul

Oct

2016

Core PCE

Target

The Fed has set its inflation target explicitly at 2 percent. The Fed prefers the PCE measure of core inflation.